Healthcare mergers and acquisitions are becoming more prevalent as organizations face increased competition, staffing challenges and financial hurdles.
Here are 10 notable trends for ASC leaders to know:
1. Despite a “significant decrease” in the clinical risk of heart failure patients admitted to hospitals acquired by private equity firms, clinical outcomes did not improve, according to a study published June 9 in JACC.
2. Health insurers are facing increased scrutiny from legislators, physicians and other stakeholders over industry consolidation. Lawmakers recently zeroed in on the growth of vertically integrated health conglomerates that own insurance companies, pharmacy benefit managers, physician practices and pharmacies under one umbrella. Congressional hearings were held with insurance CEOs Jan. 22 over industry consolidation, prior authorization practices and executive pay, with Congress members pressing executives to explain how vertical integration benefits consumers as insurance premiums continue to climb. Several lawmakers criticized vertical integration, with one saying, “Vertical integration is destroying people’s ability to access care.”
3. There were 963 closed healthcare M&A transactions in fiscal 2025, down from 1,163 in 2024, a continued “normalization” from post-pandemic peaks, according to a Jan. 14 report from PCE Investment Bankers.
4. Physician groups remain a popular target of investment within healthcare as their “value-creation playbook” continues to adapt with new technology and industry demands, Bain & Company reported Jan. 8. While physician group transactions have declined as a share of all global provider transactions, they remain a major part of many private equity portfolios.
5. Many physician practices may involve firms that compete closely enough to raise antitrust concerns, according to a 2025 analysis of claims data covering more than 60 million insured members a year.
6. Merger enforcement in deals involving hospitals and ASCs is below average, according to a report released by the Progressive Policy Institute in December 2025.
7. Acquisitions of physician practices by hospitals and health systems are occurring the most frequently in the Midwest, according to a report released by the Progressive Policy Institute in December 2025.
8. Independent practice is in decline across at least nine medical specialties due to hospital acquisitions, according to a report released by the Progressive Policy Institute in December 2025.
9. Private equity-backed “roll-up” strategies in ASCs have helped create some of the country’s largest platforms, often through a series of smaller acquisitions that may not individually trigger federal antitrust reporting requirements, according to a report from the Private Equity Stakeholder Project.
10 The last several years have seen a significant expansion of private equity activity in healthcare, and with that, a new wave of state-level legislation aimed at placing more scrutiny on PE deals.
